PRC-3 · Chapter 20 · Question 20 of 30
To destroy foreign competition, an international corporation heavily subsidizes its wheat and sells it into Pakistan at a price significantly below its actual cost of production. This predatory trade practice is known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Dumping
Explanation
Dumping occurs when a country or firm exports goods at a price lower than their domestic price or actual production cost, often to drive local competitors out of business.
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